Pre-foreclosure wrap up: $32M multifamily filed in Hollis; $9M medical townhouse in Lenox Hill

Community Preservation Corporation files $32M pre-foreclosure in Hollis: The Community Preservation Corporation, which bought a portfolio of former Signature Bank loans, through the entity SIG RCRS C MF 2023 Venture LLC, alleges a $32 million loan originated in 2015 is in a payment default. The loan is secured by the 324-unit, four-building complex with the address 190-01 Woodhull Avenue in Hollis, Queens, which is owned by Ronald D. Heath Jr.’s RDH Crystal Gardens LLC. The lender filed the complaint May 7, 2025 in New York State Supreme Court in Queens.

Court filings represent the position of one party and are not necessarily accurate or complete.
According to the complaint, “Borrower defaulted under the terms of the Loan Documents by failing to repay the Loan starting with the payment due for October 10, 2023 and continuing thereafter unabated.” Heath’s entity filed dozens of landlord and tenant nonpayment cases between 2020 and 2023, many of which were satisfied and thus discontinued. Ronald D. Heath Sr. bought the building in 1981. The debt rose slowly until a refinance in 2008 for $17.35 million, followed by a $21 million refinance in 2013 and finally the $32 million from Signature Bank in 2015. The loan has a maturity date of October 10, 2025. A $3 million tax lien tied to the properties was sold in 2022.
Case LINK

The elevator building with 324 residential units in Hollis has 316,540 square feet of built space according to a PincusCo analysis of city data. The parcel has four buildings with frontage of 500 feet and is 300 feet deep with a total lot size of 97,500 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The property has a J-51 exemption that started in 1988 and expires in 2022. The city-designated market value for the property in 2022 is $21.6 million.

The 316,540-square-foot property generated revenue of $5.1 million or $16 per square foot, according to the most recent income and expense figures.

According to city public data, the property has received one DOB violation, $5,625 in ECB penalties, 122 housing violations, $6,480 in OATH penalties, and one housing litigation in the last year.
Direct link to the property’s ACRIS page

Blackstone files $9M pre-foreclosure at Feil medical townhouse in Lenox Hill: Blackstone Group through the entity SIG CRE 2023 Venture LLC alleged a maturity default in a $9 million loan originated in 2016 and secured by the Feil Organization’s medical office townhouse at 162 East 78th Street in Lenox Hill, Manhattan.
Case LINK
Feil bought the building in January 2016 for $17.35 million, borrowing $9 million from Signature Bank at the time. The lender filed the complaint May 7, 2025 in New York State Supreme Court in Manhattan.

According to the complaint, this is a maturity loan default. “The Loan, by its own terms, matured on February 10, 2023… the borrowers failed to comply… by failing to remit payment… By reason of the foregoing Default, the entire principal balance remaining unpaid on the Note, in the amount of $9,000,000.00, together with interest therein at the rate(s) provided under the Loan Documents plus any and all late charges, fees, expenses, protective advances, legal fees and other charges, is immediately due and payable.”
There have been many similar maturity defaults since the rise in interest rates and the general decline in commercial property values.

The office building in Lenox Hill has 9,007 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 18 feet and is 102 feet deep with a total lot size of 1,916 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.8 million.
Direct link to the property’s ACRIS page